JSE-listed MTN Group on Tuesday reported a strong first quarter performance as the group executes on its Ambition 2030 strategy.

During the three months to March 31, MTN Group earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 27.9%, outpacing revenue growth owing to a continued focus on expense efficiencies.

This resulted in a widening of the group’s Ebitda margin by three percentage points to 47.6%.

“MTN Group has reported a strong overall performance and resilient financial results despite an uncertain geopolitical and macroeconomic environment,” said MTN Group president and CEO Ralph Mupita.

“We have concluded the first quarter of executing on our new Ambition 2030 strategy solidly with our operations delivering both service revenue growth and Ebitda margin expansion.”

South Africa’s reported Ebitda declined by 12.5% with a margin of 32.6%, down 4.1 percentage points.

Excluding the effect of movements in the group share price on the provision for the MTN South Africa employee share scheme, Ebitda would have declined by 8.3%, with a margin of 35.4%.

According to MTN Group, it was negatively impacted by the income statement charge accounting for the employee share scheme, slower topline growth, increased commission costs and higher bad debt in Enterprise Business Unit, online and telesales channels.

Cost efficiencies were realised in other areas of the business to offset these impacts, with expense efficiency programmes remaining an area of focus.

MTN Nigeria reported a robust first-quarter performance, with Ebitda increasing by 67.7%, and the Ebitda margin expanding by 8.7 percentage points to 55.3%, while MTN Ghana achieved Ebitda growth of 42.9%, with margins expanding by 3.1 percentage points to 61.2%.

Meanwhile, overall MTN Group service revenue for the first quarter increased by 20%, or 21.1% on a constant currency basis.

This was led by sustained commercial execution at MTN Nigeria (41.7%) MTN Ghana (35.7%), MTN Cameroon (14.4%) and MTN Côte d'Ivoire (18.3%).

Despite the continued competitive pressure on the prepaid market at MTN South Africa, service revenue growth edged up by 0.7%.

MTN Southern and East Africa region delivered service revenue growth of 19%, led by increases in Sudan, Uganda, Zambia, South Sudan and Rwanda, as well as double-digit gains in data, which was up 30%, voice, which increased 14.1%, and fintech, which increased 12.7%.

In Francophone Africa, service revenue increased 8.7%, driven by data, which increased 8.9% and fintech, which surged 153.5%.

Overall, data remained the biggest contributor to total group service revenue growth, rising 35.4%, while voice revenue remained resilient, expanding by 4.7%, supported by subscriber growth and customer value management initiatives in key markets. Fintech revenue increased 20%.

During the quarter under review, total subscribers increased by 5.4% to 312.7-million, with active data subscribers increasing by 8.7% to 175.6-million and active Mobile Money monthly active users increasing by 8.2% to 67.4-million.

The volume of fintech transactions increased by 15.8% to 6.3-billion and their value rose by 32.8% to $163-billion.

MTN Group invested capital expenditure (capex) of R9.6-billion, at a capex intensity of 16.4%, during the first quarter to sustain the quality, coverage and capacity of its networks.